William Stalter is the founder of Stalter Legal Services and the Preneed Resource Company. Bill focuses his law practice on preneed and death care compliance, serving banks, funeral homes, crematories, and cemeteries. He has written multiple published articles
By Bill Stalter on Posted in Exams/audits,Missouri - SB1,UncategorizedOur first recommendation to the Missouri State Board of Embalmers and Funeral Directors is that they assume, and maintain, control over the preneed examination procedures. The exam procedures implemented two years ago were never submitted to the Board for review and approval. Accordingly, the examination procedures handbook should remind the staff that any change made… Continue Reading
By Bill Stalter on Posted in Exams/audits,Missouri - SB1With an action that caught some by surprise, the Missouri State Board of Embalmers and Funeral Directors voted to suspend future preneed examinations and accept recommendations on a new process. We have made several posts on the faults of the Missouri examination process, and now commend the Board on taking a bold action. The Missouri… Continue Reading
By Bill Stalter on Posted in Exams/audits,Missouri - SB1To begin reform of its preneed exam process, the Missouri State Board of Embalmers and Funeral Directors is seeking input from the industry by this Friday, June 8th. Specifically, the State Board is requesting comments to the Exam Procedures Handbook prepared by its staff. We have made edits to that handbook, and will provide more… Continue Reading
By Bill Stalter on Posted in Exams/audits,Missouri - SB1,RecordkeepingWhen the State Board approved a new “adequate seller records” rule on April 25th, there wasn’t much discussion of the documents or reports to be maintained for performed and canceled preneed contracts. In a sense, the Board may not need to expand beyond the FTC’s statement of goods and services requirement. If a funeral home… Continue Reading
By Bill Stalter on Posted in Exams/audits,Missouri - SB1The Missouri funeral industry has haggled with the State Board for two years over preneed record requirements. But on April 25th, the State Board scrapped the staff’s adequate record proposal, and instead, adopted a brief definition of ‘seller records’. The State Board’s approach will afford funeral homes more flexibility in documenting the receipt of consumer… Continue Reading
By Bill Stalter on Posted in Missouri - SB1Another welcomed change made by the State Board on April 25th was to approve an extension on the filing of annual reports. Missouri has one of the shortest periods (60 days) for filing a preneed annual report. Neighboring states not only granted more time (Illinois 75 days, Iowa 105 days and Nebraska 150 days), they… Continue Reading
By Bill Stalter on Posted in Exams/audits,Missouri - SB1The April 25th meeting of the Missouri State Board of Embalmers and Funeral Directors marked an important transition where industry members assumed control over the protection of consumers’ preneed funds. After the first round of financial examinations, the Board’s procedures for the second round were defined by the Board’s staff, and never submitted to the… Continue Reading
By Bill Stalter on Posted in Compliance,Exams/audits,Missouri - SB1Missouri funeral homes are frustrated with the State Board of Embalmers and Funeral Directors. The second round of preneed examinations has begun, and the Board’s staff is citing sellers for “new” contract form violations on “old” contracts. Examiners are reviewing all outstanding contracts, including those covered in the seller’s first examination, and now citing the… Continue Reading
By Bill Stalter on Posted in Compliance,Missouri - SB1Starting with its 2014 fiscal year, the Missouri State Board of Embalmers and Funeral Directors has initiated 334 complaints against Missouri funeral homes. That is an average of 11 complaints per month. During the four years that preceding 2014, the State Board filed only 77 complaints against funeral homes, or an average of 1.5 complaints… Continue Reading
By Bill Stalter on Posted in Compliance,Exams/audits,Missouri - SB1Ten years after the collapse of NPS, the Missouri State Board of Embalmers and Funeral Directors has a confidence problem with licensees and legislators. Licensees see a regulator that is obsessed with DBAs, renewal reports, and exams that focus on contract provisions. Legislators see a regulator that will not fulfill the SB1 mandate to protect… Continue Reading
By Bill Stalter on Posted in Exams/audits,Missouri - SB1,Recordkeeping,Reporting,UncategorizedPursuant to a notice that may, or may not, satisfy state law, the Missouri State Board of Embalmers and Funeral Directors met in closed session this morning. At the State Board’s December meeting, Division counsel advised that 24 hours’ notice to the public was required to amend the Board’s agenda. Notice of this 9:00 am… Continue Reading
By Bill Stalter on Posted in Exams/audits,Recordkeeping,UncategorizedThe last time the Missouri State Board of Embalmers and Funeral Directors took up the issue of preneed seller record keeping requirements, the staff proposal emphasized a contract ledger approach. The proposal sought to require a contract record that reflected the amount and date of each payment received and the corresponding dates and amounts deposited… Continue Reading
By Bill Stalter on Posted in Exams/audits,RecordkeepingTwo years ago, the Missouri State Board of Embalmers and Funeral Directors met in Independence to discuss their staff’s recommendations for seller record keeping requirements and the scope of preneed examinations. As the minutes somewhat reflect, the staff proposals were met with strong public opposition. (This blog documented those issues in prior posts that are listed… Continue Reading
By Bill Stalter on Posted in Exams/audits,Missouri - SB1,UncategorizedIn their last meeting, the members of the Missouri State Board of Embalmers and Funeral Directors took a small, but important pivot in the preneed examination process. The State Board approved a recommendation made by the Financial Examination Committee that the Committee review each examination report and prepare the letter that accompanies the report to… Continue Reading
By Bill Stalter on Posted in Compliance,Exams/audits,Missouri - SB1,Recordkeeping,UncategorizedIn paragraphs 53 through 71 of the MFT Complaint, the State Board sets out certain duties that only a licensed Missouri preneed seller may perform. The Complaint asserts that these seller duties are either being performed by the funeral homes that contract to be ‘providers’ with the MFT, or by Eagle Bank as trustee for… Continue Reading
By Bill Stalter on Posted in Administration,Exams/audits,Missouri - SB1,RecordkeepingIn our prior post, we looked at Paragraphs 39 through 52 of the Complaint filed against the Missouri Funeral Trust, and the implications of Missouri’s Common Trust Fund law. In this post we will look at paragraphs 79 through 95 of the State Board Complaint, and what exposures rollover funeral homes could have. The Complaint… Continue Reading
By Bill Stalter on Posted in Administration,Investments,Recordkeeping,ReportingIn paragraphs 39 through 52, and paragraphs 79 through 95, of the Complaint filed against the Missouri Funeral Trust, the State Board of Embalmers and Funeral Directors raises issues with regard to the preneed trusts that were transferred by funeral homes to MFT. The re-write of Missouri’s preneed law in 2009 provided the MFT an… Continue Reading
By Bill Stalter on Posted in Exams/audits,Missouri - SB1,RecordkeepingThe next claim made in the Missouri State Board Complaint against the Missouri Funeral Trust is that the program is holding funds for preneed contracts that have either been serviced or canceled. The Complaint cites Section 436.456 as legally requiring the MFT trustee to distribute an account’s funds when it receives documentation that the contract… Continue Reading
By Bill Stalter on Posted in Compliance,Exams/audits,Missouri - SB1,RecordkeepingParagraph 26b of the Complaint filed by the Missouri State Board of Embalmers and Funeral Directors alleges that the Missouri Funeral Trust fails to maintain “records that explain why the principal held in trust exceeds the face value of the preneed contract associated with that account…” We anticipate that this claim is considering the contract… Continue Reading
By Bill Stalter on Posted in Exams/audits,Master Trusts,Missouri - SB1,Recordkeeping,UncategorizedAfter five months of trading Complaints and Answers, the Missouri State Board of Embalmers and Funeral Directors and the Missouri Funeral Trust have been assigned an October hearing date before the Administrative Hearing Commission. The dispute between the State Board and the MFDEA’s master trust program has been waging for years over issues such as… Continue Reading
By Bill Stalter on Posted in Exams/audits,Missouri - SB1It has been more than a year since the Missouri State Board of Embalmers and Funeral Directors approved the expansion of the scope of financial examinations. Consequently, preneed sellers up for their second preneed audit are receiving notices that request the following reports and documents: A current statement from your state or federally chartered financial… Continue Reading
By Bill Stalter on Posted in Missouri - SB1Keeping true to a campaign promise, one of the first acts of Missouri Governor Eric Greitens was to issue an executive order that gives each state agency until June 30, 2018 to repeal or cease any regulation that is ineffective, unnecessary of unduly burdensome. The Governor’s order sets out the following review procedures: Every State… Continue Reading
By Bill Stalter on Posted in Compliance,Exams/audits,RecordkeepingThe final section of the Missouri preneed seller record rule will likely draw criticism from the industry: The standards set forth in this rule are stated only as minimum standards. Each seller may maintain any records in addition to those set forth in this rule. In addition, if the board determines that it is unable… Continue Reading
By Bill Stalter on Posted in Compliance,Exams/audits,RecordkeepingIn our continuing review of the Missouri Seller Record Keeping proposal, the rule next addresses what a preneed seller must retain with regard to its consumer contracts. However, the proposal actually contains two sections requiring the retention of contracts and agreements (Section 2.A and Section 2.F). Of the two, Section 2.F is the more detailed:… Continue Reading
